Kandi Delivers First Batch of Electric Scooters to Walmart Supplier

Kandi announced today it has delivered 1,232 electric scooters and 37,755 electric self-balancing scooters against the backdrop of declining NEV sales in China.

Anthony Russo
    Oct 14, 2019 5:25 PM  PT
Kandi Delivers First Batch of Electric Scooters to Walmart Supplier
author: Anthony Russo   

The stock in Kandi Technologies Group Inc. (Nasdaq KNDI) soared nearly 5% on Monday, at $4.94 per American depositary share, after it announced its subsidiary began the delivery of its first batch of scooters to a U.S. company.

The $70.5 million agreement was announced last month. The Jinhua-based maker of electric vehicles said it would supply 300,000 e-scooters and 500,000 self-balancing e-scooters to the United States-based electronics manufacturer, DGL Group Ltd. The delivery of the first batch, 1,232 electric scooters and 37,755 electric self-balancing scooters, has begun, according to the latest statement from Kandi.

"According to the latest rankings from NPD, DGL Group's Hover-1 series products are among the top five with the most significant increase in the U.S. intelligent transportation products market, which demonstrates DGL Group's potentials in promoting and marketing these vehicles," Xiaoming Hu, the chairman and chief executive officer of Kandi, said in a statement on Monday.

Hu added, "We are confident in our cooperation in future endeavors and achievements of further success."

Since 2017, DGL has been Walmart's largest supplier of electric self-balancing scooters, and has partnerships with some of the biggest retailers in the U.S.

Separately, the sales of new energy vehicles (NEV) in China declined in September. Impacted by subsidy cuts, sales on NEVs plummeted 34.2% last month, following a 15.8% decrease in August, as reported by Reuters citing a report by the China Association of Automobile Manufacturers (CAAM).

Kandi said in its second-quarter financials in August that EV parts sales reached $19 million, up 22.4% year-over-year.

The company also announced in a separate statement today a change to its independent accounting firm, saying Marcum Bernstein & Pinchuk LLP will assume the role, replacing BDO China.

Kandi was not immediately available for comment when contacted by CapitalWatch.